Bulls charge on Dalal Street: Sensex and Nifty surge over 2%

Sensex jumps 1,961 points, Nifty climbs 557 points

Indian stock markets witnessed a spectacular rally on Friday, with the Sensex soaring by over 1,961 points and the Nifty jumping 557 points, as the market emerged from oversold territory. The broad-based rally, driven by large-cap stocks, was powered by strong buying in financial stocks and positive global cues, including robust US labor market data.

The Sensex closed at 79,117.11, up 1,961.32 points or 2.54%, while the Nifty ended at 23,907.25, gaining 557.35 points or 2.39%. This marked the biggest rally since June 5, when the Sensex surged 3.20% or 2,303.19 points, and the Nifty rose 3.36% or 735.85 points.

Market experts attributed the rally to a combination of factors, including the recovery in financial stocks and a positive global outlook. Notably, the strength in blue-chip banking stocks contributed significantly to the upward momentum in both indices.

Krishna Appala from Capitalmind Research noted that the ongoing market correction has created opportunities to accumulate quality stocks with strong fundamentals. “Despite global challenges, India’s long-term growth story remains compelling. Investors should focus on sectors aligned with structural themes like urbanization, infrastructure, and consumption growth,” he said, emphasizing the importance of disciplined investing and a long-term perspective.

The IT sector, which has been underperforming recently, is also expected to recover as global headwinds ease in the medium term, offering further upside potential for investors.

Vinod Nair, Head of Research at Geojit Financial Services, highlighted positive global momentum, citing Japan’s mild inflation decline and a massive 39 trillion yen stimulus package. “The moderation in both global and domestic political tensions provided a much-needed relief to the market,” Nair said.

Domestic institutional investors (DIIs) played a pivotal role in the rally, contributing to the buying spree, while foreign institutional investors (FIIs) continued their selling trend, offloading equities worth Rs.5,320.68 crore on Thursday. DIIs, however, bought shares worth Rs.4,200.16 crore, further supporting the market’s recovery.

Among the biggest gainers in the Sensex pack were the State Bank of India, ICICI Bank, IndusInd Bank, Tata Motors, Power Grid, Bajaj Finance, Bajaj Finserv, and Tech Mahindra.

With strong domestic support and favorable global conditions, the stock market has regained investor confidence, fueling optimism for the remainder of the year.

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